Aatmanirbhar Bharat! Good news for Mudra Shishu Loan account holders - Check Modi government's latest decision

It's a good news for Mudra Shishu Loan account holders as Modi government has taken a big decision. The Finance Ministry has confirmed that as many as 9.37 crore Mudra Shishu loan account holders will benefit from 2 per cent interest subvention scheme approved by the government as part of the Rs 20 lakh crore Aatmanirbhar Bharat Abhiyan package. Under the Shishu category, lenders provide collateral-free loans of up to Rs 50,000.

"Another step towards helping small biz build #AtmaNirbharBharat. @sidbiofficial to provide amt to MLIs upfront to benefit 9.37 Cr loan accs under Govt. Approved 2% Interest subvention on prompt repayment of #MudraShishu loan for 12 months," the Department of Financial Services said in a tweet.

Another step towards helping small biz build #AtmaNirbharBharat. @sidbiofficial to provide amt to MLIs upfront to benefit 9.37 Cr. loan accs under Govt. approved 2% Interest subvention on prompt repayment of #MudraShishu loan for 12 months. Details at https://t.co/tx61dKYf3n

— DFS (@DFS_India) July 14, 2020

Last month, the Union Cabinet approved a 2 per cent interest subsidy scheme for Shishu loan account holders under the Mudra Yojana to help small businesses tide over difficulties created by the lockdown following the outbreak of coronavirus disease.

The 2 per cent interest subvention is estimated cost of the exchequer approximately Rs 1,542 crore.The scheme is extended to loans that are outstanding as on March 31, 2020, and not in Non-Performing Asset (NPA) category. The move will incentivise people who will make regular repayments of loans.

Pradhan Mantri Mudra Yojana

-The Pradhan Mantri Mudra Yojana (PMMY) was launched by Prime Minister Narendra Modi on April 8, 2015, for providing loans up to 10 lakh to non-corporate, non-farm small/micro enterprises.

-These loans are classified as MUDRA loans under PMMY. These loans are given by commercial banks, RRBs, small finance banks, MFIs and NBFCs.

-The scheme will be implemented through the Small Industries Development Bank of India (SIDBI) and will be in operation for 12 months.

-For borrowers, who have been allowed a moratorium, as permitted by RBI under the ''COVID 19 Regulatory Package'', the scheme would commence post completion of the moratorium period till a period of 12 months (from September 01, 2020 till August 31, 2021).